Rehoboth Beach awards $37 million to ocean outfall contracts

Construction of the $52.5 million Rehoboth Beach ocean outfall project will begin soon after bids were accepted on Thursday. Here are the basics of an ocean outfall.
Jerry Smith/The News Journal/WOCHIT

A large offshore drilling rig and survey boat have arrived off Rehoboth Beach in the Atlantic Ocean to start test borings and surveys for the city's proposed sewage outfall pipe to be placed underwater.(Photo: Chuck Snyder/SPECIAL TO THE NEWS JOURNAL)

The commissioners awarded roughly $37.36 million for the four projects. With change orders, it is expected the total could reach $43.2 million taking into account change order contingency — 5 percent of the total budget. The city has budgeted $52.5 million.

"This is a very unique project, and it's not like there are 50 contractors out there who can do this type of work," said Kelvin George, a representative from GHD — the engineering firm in charge of the project. "We wanted to make sure we found contractors who were qualified enough to do this project, and so the packet was centered around the level of experience necessary to perform this type of project."

There was little discussion surrounding the votes with the exception of awarding the contract for the ocean outfall project.

Commissioner Kathy McGuniess raised concerns over Manson Construction Co. and its history with environmental and safety violations, including an OSHA violation and an environmental protection agency violation in the late 1990s.

View of the stormwater outfall near Maryland Avenue in Rehoboth Beach.(Photo: Jason Minto, The News Journal)

"I'm not here to hold up the project, but there is information easily out there on the internet of different things that should be presented." McGuiness said. "And my concern is there are not a lot of companies that perform this and it's slim pickings. I am really concerned about the contract, how it's drafted and what the penalties are because this is very crucial not only to the coastline and our economics, our tourism and our marine life but the for the state because we generate dollars for them."

However, members of the commission were assured by representatives from GHD that all companies involved, including Manson Construction, were properly vetted.

Sussex County Engineer Hans Medlarz also spoke in favor of Manson Construction company.

"These were issues that can happen to any contractor," he said.

In the end, he said, he wants to see the contract awarded to somebody with the experience to do the project.

When it came time to vote, McGuiness's name was the last one called. She was hesitant in her decision but ultimately sided with her fellow commissioners.

"With faith in partnering with the county, I'll vote 'aye,' " she said.